As shareholder support for climate-change action grows, SEC votes to throttle those voices

The Securities and Exchange Commission proposed Tuesday two long-anticipated rules that seek to limit shareholders’ influence over how companies address contentious issues such as climate change and executive compensation.

The SEC voted 3-2, along party lines, to raise the re-submission thresholds for motions that shareholders file on company ballots and to impose new requirements on firms guiding investors how to vote in corporate elections.

Investor groups were largely critical of the development, particularly environmental, social and governance (ESG) advocates who claim progress has been made in holding companies and their leaders accountable for corporate carbon footprints and adequately alerting investors to risks to profits from extreme weather and other factors. Read Full Article - MarketWatch, November 5, 2019